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The Asian Development Bank (ADB) signs a memorandum of understanding with the State Electricity Corporation (PLN), Indonesia’s state-owned power company, to support the country to reach its clean energy goals.
The agreement was signed at COP26 between PLN Chief Executive Officer Zulkifli Zaini and ADB Director General for Southeast Asia Ramesh Subramaniam. Indonesia Vice-Minister of State-Owned Enterprises Pahala Mansury and Indonesia Vice-Minister of Environment and Forestry Alue Dohong witnessed the signing.
“ADB has been involved in the energy sector in Indonesia for more than 50 years and we are proud to join with PLN to help Indonesia make this important transition from carbon-heavy energy to clean energy,” said ADB Vice-President Ahmed M. Saeed. “ADB stands ready with our partners in Indonesia to support a transition toward renewable energy that is also reliable and affordable.”
Indonesia recently committed to reducing greenhouse gas emissions by 29% by 2030. The country aims to achieve net-zero emissions by 2060 or earlier.
“Indonesia’s state-owned enterprises support the country’s transition to net-zero, as this will benefit both the people and the environment,” said Indonesia Minister of State-Owned Enterprises (SOE) Erick Thohir. “The ministry welcomes SOE’s collaboration with various stakeholders, which marks the first step to a just and affordable transition in order to foster a carbon-neutral development path.”
Along with the Philippines and Viet Nam, Indonesia is one of three countries in Southeast Asia partnering with ADB on a pilot study of the Energy Transition Mechanism (ETM), a carbon reduction program aiming to use public-private financing to accelerate the retirement of coal-fired power stations and replace them with clean, renewable sources of energy. ADB has concluded a pre-feasibility study into ETM and is now working on a full feasibility study.
ADB recently raised its ambition for 2019–2030 cumulative climate financing to $100 billion and is committed to ensuring that at least 75% of its projects will address climate change mitigation and adaptation by 2030.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.